In general, Bitcoin and cryptocurrency traders should I woke up to red lines throughout (opens in new tab)bitcoin followed the open market with a steep 9.3% drop to a three-week low of $21,400. This marks the steepest drop in two months, as it has lowered confidence in .
Markets respond quickly to changes in monetary policy. The temporary rally in the stock and crypto markets after the May-June crash was based on the market’s confidence that it has already priced in a rate hike in 2022. This was consistent with expectations that inflation would soon subside to see a reversal in 2023. Rate hikes set the stage for a gradual recovery, along with a controlled return to normality.
From May 5th to June 19th, Bitcoin drops over 50% (opens in new tab), from a high of $39,676 to a bottom of $18,958 by June 19. Meanwhile, Bitcoin has (more or less) steadily gained support, with him hovering around $24,000 since the end of July.
That recovery is now a mess.
According to Coinglass data, today’s economic recession will put Bitcoin traders at an estimated $600 million in liquidations in the last 24 hours (opens in new tab)Liquidation is one of the processes of closing traders’ positions. This usually happens when you overcommit funds by borrowing assets against Bitcoin. This problem occurs when the price of Bitcoin falls more than traders expected. This means that there are no more funds to guarantee the position, and the guarantee (Bitcoin) could trigger a liquidation event where the guarantee (Bitcoin) is used to pay off the debt.
Expectations that the Fed will raise rates further than previously thought and increased risk of continued interest rate hikes quantitative tightening (opens in new tab) By 2023 – that is, Bitcoin fear and greed index is now at 33 points (opens in new tab) – 8 fewer than the previous week’s 42. Lower numbers indicate more fear, while higher numbers indicate more greed (and more willingness to invest).
Bitcoin may be the leading currency by market capitalization, but the cryptocurrency market is much bigger than that. is riding a wave of excitement and rising ratings due to the imminent completion of
Other promising cryptocurrencies such as Algorand fell 10.5%, while lesser-known altcoins file coin (opens in new tab) FIL token led a spectacular 18.5% decline.flow, cryptocurrency Recently partnered with tech giant Meta (opens in new tab)is down 17%.ethereum classic etc The token fell 15% as it was seen as an Ethereum alternative that could enable GPU mining with a second lease.
No one knows when or how the market will readjust, and it depends largely on investor sentiment and due diligence. But inflation is still free-running, Questions are being raised about how changes in monetary policy are contributing to lower inflation (opens in new tab)it’s prudent and don’t invest more than you can afford to lose.
